Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

CASE 3-1 TECH-TONIC SPORTS DRINK CLO 2, 3) The Western Beverage Company is marketing during April and, Tech a new conversion costs, 300,000gallons were completed

image text in transcribed
image text in transcribed
image text in transcribed
CASE 3-1 TECH-TONIC SPORTS DRINK CLO 2, 3) The Western Beverage Company is marketing during April and, Tech a new conversion costs, 300,000gallons were completed wo Sports Drink The for $16 per gallon, and in recent months the company has sodium to be added at the start of the saes of more than 525,000 had production process calls for much 1 part syrup with 5 parts gallons per month. Consumers on two separate anew worker added too water to make a drink replenishes sodium, errors were not identified vital bodily fluids following exertion" and batches ruined The batches were tested the start of April, there were until the end of the production process when fired. Work in Process. The product 200.000 gallons in beginning for quality assurance, Needless to say the worker was Bergman, is was 100 percent complete with The controller of Western Beverage, Gunther respect to material and 50 percent complete with respect to con- cons two ways to treat the cost of the "lost" units. One idering version costs. During April, 500,000 gallons were of the approach is to bury" the cost in the units completed and the 700,000 units to account for, 100,000 gallons remained in pro- units in process. This would result in cost of units completed of cess at the end of April. These units were 100 percent complete $1,669,000 and cost of ending work in Process of $222,600 cal with respect to material and 20 percent complete with respect to culated as follows. Approach No. 1 Tech-Tonic Sports Drink Syrup Production Cost Report April Quantity Reconciliation Units in beginning wIP (100% material, 50% conversion costs) 200,000 Units started 500,000 Units to account for 700,000 Units completed 300,000 in ending wIP (100% material, 20% conversion costs) Lost units 100,000 300,000 700,000 Units accounted for

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

ACCOUNTING JOB QUESTIONS AND ANSWERS Trainee Accountants Handbook

Authors: Sterling Libs FCCA

1st Edition

1911037129, 978-1911037125

More Books

Students also viewed these Accounting questions

Question

What lower-layer protocol encapsulates SNMP messages?

Answered: 1 week ago